Galante Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

Multiple Choice

Galante Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,380 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:
Actual results for May:
-The net operating income in the flexible budget for May would be closest to:

A) $16,115
B) $15,926
C) $10,130
D) $10,300